Work Up Your Credit Score

Keeping your credit score in top shape is has many benefits. When your credit score is a pretty picture, the lenders treat you with utmost respect and are willing to offer you the best deals on loans. You can not only get best interest rates but also become eligible for credits cards and double your line card, among other things.  The thing with credit card is that it incites impulsive purchase, often leading to mounting debts that become huge over a period of time and unmanageable. If you have credit card dues, then make sure you at least pay the minimum amount every month to avoid being charged with late fees. Once your cards have been paid off, try to be more sensible in the future about your spending, rather than closing off the card. However, reaching a certain score and then maintaining it is tough work. You are walking a tight rope and a slight imbalance can throw you off in a bad way. But that doesn’t mean your credit score is beyond redemption.

There are not one but many proven ways to get your score in order.



Here are some ways to shape up that credit score.

If you want to establish a credit history, you need to have credit first. The best way to get started down that road is to apply for a credit card. If you are applying for the first time, the banks will be wary at first and may offer you a secured card. The banks may charge you higher interest rates or ask you to put down a deposit on your credit card until you prove that you are trustworthy. But don’t feel disheartened as this is all going to build up that credit score you are after.

You may not know this but credit score is impacted by the utilization of your credit card. You should never exceed 30% of your credit limit to keep your credit score under check. The best thing would be to stay under 30% to keep your score at a better level. To increase your score at a quicker pace, make a small purchase on your credit card and immediately pay it off.

Never fail to pay your credit card in full each month and within the time period. Late fees attract penalties in the form of lower credit score. Never use your credit card to buy something you will not be able to pay off in full the following month. Paying minimum due is no good because you will only end up paying an interest, without helping your credit score.

Having a good credit score is essential for all the times you would need to apply for loans. You cannot ask for good prepayment terms unless your credit history is strong.